Commit To Purchase Vince Holding At $22.50, Earn 10.6% Annualized Using Options

Investors considering a purchase of Vince Holding Corp (NYSE: VNCE) stock, but tentative about paying the going market price of $27.71/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the June 2015 put at the $22.50 strike, which has a bid at the time of this writing of $1.25. Collecting that bid as the premium represents a 5.6% return against the $22.50 commitment, or a 10.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Source: Markets